Kansas lawmakers have approved a significant sales tax exemption aimed at boosting the state's data center industry. The new legislation provides a tiered sales tax exemption for the construction and remodeling of qualified data centers, with a minimum investment threshold set at $250 million.

Under the new framework, projects with a $250 million investment will receive a 10-year sales tax exemption, a reduction from the 15 years proposed in the Senate version. For investments of $500 million, the exemption period has been adjusted to 20 years, down from 30 years. The most substantial benefit is reserved for projects exceeding $1 billion, which will now enjoy a 40-year tax exemption, reduced from 60 years.

The exemptions cover a wide range of expenses, including land improvements, buildings, modular data centers, and essential equipment such as computers and servers. Additionally, the legislation mandates that qualifying projects must create and maintain at least 20 new jobs within two years of opening.

This legislative move is expected to attract significant investment in Kansas's data center sector, potentially leading to job creation and economic growth in the region. As the bill moves forward, stakeholders are optimistic about the positive impact it will have on the local economy and the technology landscape in Kansas.